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Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-. As a CTEP calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).
Suggested Answer: A
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27 comments · newest first
DO
Dortha
2 days ago
Adjusting for inflation, right?
NA
Nathalie
7 days ago
Why A? What's the calculation?
DO
Dortha
12 days ago
I lean towards option A.
GE
Georgene
17 days ago
I feel confused about the CII values.
SH
Shala
23 days ago
I think it's straightforward.
AL
Alverta
28 days ago
This question is tricky!
AR
Arminda
1 month ago
Same here! Stressful question!
RO
Ronald
1 month ago
I just hope I get the math right!
MI
Miesha
1 month ago
C feels reasonable. Good middle ground.
SH
Shakira
2 months ago
I’m leaning towards C) Rs.17,68,683.
GE
Genevive
2 months ago
Adjusted for inflation, I think it fits.
CR
Cristen
2 months ago
B seems high. What’s your reason?
GE
Genevive
2 months ago
I prefer B) Rs.18,46,975.
CI
Ciara
2 months ago
Used the formula with CII.
BL
Blossom
2 months ago
Why A? What's the calculation?
CI
Ciara
3 months ago
I think it's A) Rs.17,01,639.
AR
Arminda
3 months ago
I feel confused about the CII values.
RO
Ronald
3 months ago
This question is tricky!
RI
Rima
3 months ago
I doubt the capital gain is that high, sounds off.
TE
Tenesha
3 months ago
Wait, how is the indexed cost calculated again?
CH
Cheryl
4 months ago
Definitely going with option A, seems accurate!
MI
Millie
4 months ago
The CII for 1996-97 is 305, right?
EL
Ellsworth
4 months ago
The purchase price was Rs. 10,00,000.
KR
Kristin
4 months ago
I feel like I might confuse the years when applying the CII. I hope I remember to use the right ones for both the purchase and sale dates!
HA
Haydee
6 months ago
I think the CII for the year of purchase is crucial here, and I vaguely recall that we need to use the CII of the year of sale too.
EZ
Ezekiel
6 months ago
This question seems similar to one we practiced where we had to adjust the purchase price for inflation. I think I need to double-check the CII values.
ME
Melinda
6 months ago
I remember we discussed how to calculate the Indexed Cost of Acquisition using the CII, but I'm not entirely sure about the exact formula.